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  • Writer's pictureRevolution Debt Relief

How To Get Out Of Private Student Loan Debt.

Updated: Apr 22, 2022

Your #1 Best Debt Relief Options

The Numbers

Total Outstanding U.S. Student Debt 1.6 Trillion

  • Left College With A B.A. (2017), Avg. Debt: = $28,650

  • Number Of those Students = 65%

  • The U.S. Household Avg. Student Debt: = $47,671

  • Medical Graduates Avg: = $196,520

  • Dental School Graduates: = $285,184

  • Pharmacy School Graduates: = $166,528

* Statistics Provided by Nerd-wallet

Starting Out

From the statistics listed above, private and federal student loans are an enormous debt burden on the American consumer. Most people, when they go to college, recognize that they will probably have to take some loans or receive a little financial aid. However, the average college debt for an undergraduate degree has become challenging to manage for the majority of students.

Once a student graduates and they must start paying back their undergraduate loans, times can be challenging. Some students search for student loan debt relief or help with private student loans. Much of the information available is inaccurate or a self-serving solicitation by companies pushing debt relief products that are negligible at best.

There are also a lot of private student loan debt relief companies that are highly unethical. The company will solicit a program to help with school loans allegedly. Then offering a student debt forgiveness plan for 500-1000 dollars. Many times these are nothing more than telemarketers who are selling easy to do-it-yourself paperwork to the unsuspecting customer.

Federal student loan forgiveness is about 1%, and private student loans are usually not even an option. Discover student loan debt is currently one of of the biggest private loan servicers in the country. Based on your credit history, they will offer you loans ranging from 6-16%, depending on if you have a co-signer.

Many students post-graduation do their best to keep up with their monthly student loan payment. However, with any disruption in their life, they quickly fall behind and don’t know what to do. Some search on google for help with private student loans, private student loan debt help, or how to pay off student debt.

None of the options are beneficial when the average student debt is somewhere around 47K. Add some additional credit card debt, and there is nothing left over for enjoying your life. What’s even worse when you run the numbers through a student debt calculator your typically looking at 15-20 years of loan repayments.

This is primarily due to the additional money owed from the accruing compound interest on the loan. An excellent way to understand how this works is to use a debt calculator. A frightening experience the first time but necessary to understand the gravity of your debt situation.

Student Loan Debt Consolidation

The debt industry is not commonly talked about or understood by the average consumer. After all, most people are optimistic about their future. The idea of having to find a program or credit counselor to get them out of debt is not appealing.

However, marketing and the need for a solution to the problem of various types of debts has created a burgeoning industry for debt products and services. Many of these products, such as debt settlement, debt consolidation, debt management, are actively advertised as what you need to get out of debt today!!.

However, when it comes to a loan consolidation or more specifically, a student loan consolidation this may or may not be your best option. It all depends on your specific circumstances.

If for example, your credit score is good or better, think 730 and up then that is a big plus. Most consumers don't realize that paying on time all your credit cards debts, student loans, personal loans, or any other unsecured debts does not mean you have good credit. The ratio of debt to credit plays a significant factor in determining your overall credit score.

Credit card companies recommend no more than 30% credit card utilization to keep your credit score in good standing. For many Americans who use their credit for living expenses, this can be extremely difficult.

For the average student who has racked up tens of thousands of dollars in debt during their college education, they are at a disadvantage credit-wise from the start. Therefore many consumers will not meet the criteria for the type of student consolidation loans that are most beneficial for their financial situation. However, this does not mean there is no hope only that you have to educate yourself to what your actual situation requires.

Friends And Family Option

If for example, you can borrow from friends and family, you will more than likely get a much better interest rate if any at all. A clear advantage as you would not be struggling with compound interest but paying on the principal each month.

Nothing is free in life and asking friends or family for help is a humbling experience but can save you years of financial struggle and tens of thousands of dollars. A student debt consolidation is possible but not always easy or your best option.

Debt Management Programs

You may hear about Debt Management programs as you are researching your options for student loan debt relief. D.M.P. programs can be applied with unsecured credit card debt. You pay a company a fee to consolidate your debts into one monthly bill. The company will then attempt to negotiate lower interest rates with the various lenders.

In theory, if successful, you would gain the convenience of only having to pay one monthly bill payment. Also, the lower interest rates would be beneficial as your overall debt would be reduced. The programs typically last five years or less.I would not recommend this type of program. Most companies are just after their fees and can cost as much with the service as without.

Debt Settlement Programs

Debt Settlement programs sometimes referred to as debt negotiation or debt adjustment are the standard in the debt relief industry. Most consumers have heard of debt settlement but don't know how the process works.

The concept is pretty straight forward. You hire someone else to negotiate your debts lower for a fee. The cost can vary but is typically 15-25% above the amount settled, think .75-80 cents on the dollar. The hope is that whomever you hire for this task is good at their job. The problem is finding good professional people in an industry that draws so many unethical, unsavory characters.

You may try to go with a bigger company such as National Debt Relief or Freedom Debt Relief as they are well known and have been around for a while. However, my experience is that it can be a double-edged sword.

I have no doubt they have experts in debt settlement who can fulfill most of their goals of negotiating lower debts enrolled in these programs. However, any guarantee of this is absolutely untrue.

There are too many different companies with policies against any negotiation. Also, the human element and what different people are willing to settle for varies greatly situation to situation.

The disconnect between what debt settlement companies are capable of in reality and what they tell their clients is troublesome. A debt settlement program executed correctly can save you tens of thousands of dollars. Also, allowing you to start rebuilding your credit.

When it goes sour, you only have to read the one-star reviews on any of these companies. It’s not as much a mass conspiracy of corruption as incompetence. Debt settlement does work when executed correctly.

An ethical enrollment agent will educate their client with all the potential consequences of enrolling in a debt negotiation program. Unfortunately, some agents leave out potential risks in the initial conversations. Clients become the most distraught when the positive outcome they were expecting becomes a financial and legal nightmare.Debt Settlement is not my number one pick for strategic options to get my clients out of debt but is a viable solution in certain situations.


(The Nuclear Option)

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I am not a fan of Bankruptcy, not because I think it’s an unethical way to get out of paying your debt obligations, because it's not. I don’t recommend it because it's usually not your best available option for resolving your debts. First, it stays on your credit for 7-10 years depending on the state you filed in. Next, it is on your public record for 20 years, and that’s a long time. If you compare that to a charge-off by your lender that only lasts seven years, it’s substantially longer.

I won't get into all the details on how the banks lobbied congress in 2005 to change the bankruptcy laws and made it significantly harder to file a chapter 7 bankruptcy. Only that today it can be far more complicated and challenging.

The bottom line is filing for bankruptcy should only be used when you have determined you have exhausted all your other options. Remember, I am not saying all the other debt relief solutions are easy only that in the long run, you are better off pursuing a middle ground option than the “scorched earth” approach of filing a chapter 7, 11 or 13.

Debt Validation Programs

(#1 Best Choice)

I will start by saying that a robust Debt validation program is my number one choice of strategic options for getting my client's debts resolved. It is a federal statute section 809 under the Fair Debt Collections Act, (F.D.C.P.A).

A properly executed validation program can be challenging to find in the debt relief industry. The big three debt consolidation, debt management, and debt settlement make up the vast majority of debt relief companies.

Debt validation has been around since 1978 when congress under pressure from the American people passed these powerful consumer laws. Aside from consumer advocate attorneys, very few Americans take advantage of their rights under these useful Federal statutes.

Because debt validation is federal law, it can seem a bit complicated. Most people in the debt relief industry have never heard of it or don’t understand how it works. If they did, they would recognize how much more effective it is, compared to anything else, the debt industry has to offer.

Some will say these programs are a scam, that you can do it yourself or you will end up in worse financial shape than when you started. That bankruptcy is the best option. I highly disagree. However, all of this is true without proper due diligence.

Debt Validation programs are very niche, sometimes referred to as debt dispute or strategic defaults. I estimate that maybe 1-2 % of the industry uses this type of program with a varying range of results.

However, when executed within the framework of a comprehensive strategy, they are incredibly successful. The programs include the validation of debts, legal protection, and credit restoration. If a settlement of the debts is necessary, an attorney will respond and settle the debt.

The programs are typically 48 months long with one low monthly payment. There are no up-front fees or additional cost. It is so important to not only do your due diligence but find a true consumer advocate. Someone who will guide you through the debt relief process. A professional who understands your financial hardship and genuinely cares. Not easy, but the key to the goal of regaining your financial freedom.

Private student loans if‌ ‌they‌ ‌are‌ ‌unsecured,‌ ‌do meet the requirements for the debt validation program. Everyone's situation is different, and I am by no means suggesting you stop paying your debt obligations.

However, many students, due to the predatory lending practice by their private student loan servicers are in a dire financial situation. Understanding strategic options that will benefit you financially and emotionally is a wise course of action.

It may seem as if there is no viable option other than bankruptcy. But recognizing the severe effect that has on your credit for ten years and on your public record for 20 makes it a poor decision with other available debt relief solutions.

Therefore a comprehensive debt validation program will meet the needs of people who qualify with private student loans for this strategic debt solution. Please click a link if you are interested in learning more about this powerful tool for regaining your financial freedom. Best Regards,

Mark Diaz


  • Consumer Advocate

  • Credit Counselor

  • Debt Specialist

Revolution Debt Relief LLC

Contact Information:

  • 752 South Main Street

  • Los Angeles, California

  • 90014-2013

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